How to Make 2017 Your Debt-Free Year

Call it a resolution if you want, but the start of the new year is the perfect time to seriously commit to improving your finances. In this entry, we’ll help you clear the hurdle of making the resolution and actually keeping it.

The Secret to Keeping a New Year’s Resolution

While it’s estimated that about 45% of Americans make New Year’s resolutions, merely 8% of us are successful in achieving our goal. British psychologist Richard Wiseman, who has conducted a host of surveys related to willpower said simplicity is the key. “If possible, make just one resolution. Changing a lot of things at once can be very difficult,” he said.

How to Keep Resolution for Getting Out of Debt

Whether it’s a lack of will or not having a realistic plan, here are a few key steps to staying on the path to becoming debt free.

• Be honest about understanding how you got into debt – and don’t do that thing. Whether it’s a case of over-indulging, over-borrowing or an unexpected medical expense, the first step to success is recognizing what caused your debt in the first place so that you can put steps in place that will prevent it from happening again.

• Pull your FREE credit report to get a clear view of how much debt you actually have. Many of us may know we’re in debt while at the same time being oblivious as to just how much debt we really have.

Thanks to the Fair Credit Reporting Act (FCRA), you’re entitled to a free copy of your credit report – at your request – once every 12 months from one of the nationwide credit reporting agencies (Equifax, Experian and TransUnion).

• Put a plan of attack in place. Don’t be intimidated by this; your plan doesn’t have to be complex. In fact, just prioritize your debt – by interest owed or the balance owed. Then, settle on how much you can afford to put toward your debt each month.

Think about making a lump-sum payment to one of the creditor while making the minimum payments on the other accounts. Once one creditor is paid off, take your lump-sum idea to the next one on your list.

• Take advantage of apps to stay on track. This is the digital age – has been for a while, now – and our smartphones rarely leave our hands. There are lots of apps for Android and iPhone users alike to keep track of personal finance. Mint, for example, is one of the most popular apps that will give you a real-time glimpse into all of your finances.

Need Help? Call The Oswalt Law Group

We’re experienced bankruptcy attorneys in Phoenix, and offer free consultation on all bankruptcy cases. In fact, we’ve earned a reputation for serving others with a hands-on approach and proactive strategies. To schedule a free consultation, call The Oswalt Law Group at (602) 225-2222.